Ausgold Limited's latest drilling at its Katanning Gold Project reveals significant gold mineralisation 300 metres below the existing open pit resource, confirming strong down-plunge growth potential ahead of a resource update planned for Q4 2026.
- Deep drilling intersects gold 300m below current resource
- Assays pending for hole 550m down-plunge
- Ongoing 45 RC holes and 1 diamond hole support resource growth
- Central Zone hosts ~90% of mineral resource
- DHEM surveys identify high-grade targets for further drilling
Deep Drilling Unveils New Gold Potential
Ausgold Limited (ASX:AUC) has pushed the boundaries of its Katanning Gold Project in Western Australia with deep drilling that intersected gold mineralisation some 300 metres beneath the current open pit resource in the Central Zone. This discovery confirms the continuity of the mineralised system at depth and highlights significant room for resource growth beyond existing estimates.
The company reported assay results from a diamond drill hole (BSDD063) extending 519.51 metres, revealing 13.8 metres at 0.48 grams per tonne (g/t) gold within the Jackson lode position. Geological observations suggest this hole may have grazed the margins of a larger mineralised system. Meanwhile, assays are awaited for a second diamond hole (BSDD064) drilled approximately 550 metres down-plunge, which targets a large off-hole conductor identified by down-hole electromagnetic (DHEM) surveys.
Central Zone Drives Resource Expansion
The Central Zone accounts for roughly 90% of Katanning's mineral resource and contains multiple high-grade shoots plunging shallowly to the north-northeast. The recent drilling campaign, comprising 45 reverse circulation (RC) holes totalling 3,756 metres alongside the deep diamond hole, focused on extending mineralisation beneath the current open pit and increasing confidence in early mining areas.
Noteworthy intercepts include intervals such as 16 metres at 1.32 g/t gold from 252 metres and 6 metres at 2.63 g/t from 303 metres, underscoring the consistency of mineralisation at depth. The infill drilling program, designed to tighten drill spacing to approximately 20 by 20 metres within the first two years of mining, continues to validate the geological model and support resource confidence.
DHEM Surveys Guide Next Drilling Phase
DHEM surveys have been instrumental in pinpointing pyrrhotite-rich zones associated with high-grade gold, making them prime targets for further exploration. The ongoing DHEM work, incorporating data from the recent deep holes, aims to refine conductor locations and guide subsequent deep drilling efforts.
Executive Chairman John Dorward emphasised the significance of these results, stating that the Central Zone remains substantially under-explored and expressing optimism about the upcoming resource update planned for the December quarter of 2026.
Development Progress and Upcoming Catalysts
Ausgold is concurrently advancing project development, including a substantial 25,000-metre infill RC drilling program to bolster resource confidence and support mine planning. The company also plans to report assay results from regional targets Moulyinning and Kraken, which could add further value.
The forthcoming Mineral Resource Estimate update in Q4 2026 will integrate the growing body of drilling data, potentially reshaping the resource base and influencing the project's development trajectory.
Bottom Line?
Pending assay results from deeper drilling and ongoing geophysical surveys will be pivotal in defining Katanning’s true down-plunge potential and shaping the upcoming resource upgrade.
Questions in the middle?
- Will assays from the 550m down-plunge hole confirm a major new mineralised zone?
- How will the updated Mineral Resource Estimate impact mine scheduling and reserve conversion?
- Can the DHEM surveys uncover additional high-grade shoots beyond current drilling footprints?